NasdaqGS:WMGI

Stock Analysis Report

Executive Summary

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells upper and lower extremities, and biologics products in the United States, Europe, the Middle East, Africa, Canada, Asia, Australia, and Latin America.

Snowflake

Fundamentals

Fair value with concerning outlook.

Risks

  • Wright Medical Group has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Wright Medical Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

WMGI

0.7%

US Medical Equipment

-0.2%

US Market


1 Year Return

-24.2%

WMGI

9.5%

US Medical Equipment

1.1%

US Market

WMGI underperformed the Medical Equipment industry which returned 9.9% over the past year.

WMGI underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

WMGIIndustryMarket
7 Day1.5%0.7%-0.2%
30 Day-4.6%0.1%2.5%
90 Day-29.5%2.5%1.6%
1 Year-24.2%-24.2%10.4%9.5%3.4%1.1%
3 Year-13.0%-13.0%69.3%64.1%45.2%35.8%
5 Yearn/a138.0%110.9%62.6%44.8%

Price Volatility Vs. Market

How volatile is Wright Medical Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 month ago | Simply Wall St

Insider Buying: The Wright Medical Group N.V. (NASDAQ:WMGI) President Just Bought US$998k Worth Of Shares

Valuation

Is Wright Medical Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Wright Medical Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Wright Medical Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Wright Medical Group is loss making, we can't compare its value to the US Medical Equipment industry average.

Wright Medical Group is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Wright Medical Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Wright Medical Group is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Wright Medical Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

37.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Wright Medical Group's revenue is expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).

Wright Medical Group is not considered high growth as it is expected to be loss making for the next 1-3 years.

Wright Medical Group's revenue growth is expected to exceed the United States of America market average.

Unable to compare Wright Medical Group's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Wright Medical Group's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Wright Medical Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Wright Medical Group performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Wright Medical Group does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Wright Medical Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Wright Medical Group's 1-year growth to the US Medical Equipment industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Wright Medical Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Wright Medical Group has efficiently used its assets last year compared to the US Medical Equipment industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Wright Medical Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Wright Medical Group's financial position?


Financial Position Analysis

Wright Medical Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Wright Medical Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Wright Medical Group's level of debt (123.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (62.6% vs 123.3% today).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Wright Medical Group has less than a year of cash runway based on current free cash flow.

Unable to confirm if Wright Medical Group has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

What is Wright Medical Group's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Wright Medical Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Wright Medical Group's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Wright Medical Group has not reported any payouts.

Unable to verify if Wright Medical Group's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Wright Medical Group has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Wright Medical Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Wright Medical Group's salary, the management and board of directors tenure and is there insider trading?

7.5yrs

Average management tenure


CEO

Bob Palmisano (74yo)

8yrs

Tenure

US$6,376,447

Compensation

Mr. Robert J. Palmisano, also known as Bob, has been the Chief Executive Officer, President and Executive Director of Tornier N.V. since October 1, 2015. Mr. Palmisano has been the Chief Executive Officer, ...


CEO Compensation Analysis

Bob's remuneration is about average for companies of similar size in United States of America.

Bob's compensation has increased whilst company is loss making.


Management Age and Tenure

7.5yrs

Average Tenure

53yo

Average Age

The average tenure for the Wright Medical Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.7yrs

Average Tenure

63yo

Average Age

The average tenure for the Wright Medical Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Wright Medical Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$313,05015 Aug 19
Elizabeth Weatherman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares15,000
Max PriceUS$20.87
BuyUS$215,00013 Aug 19
Barry Regan
EntityIndividual
Shares10,000
Max PriceUS$21.50
BuyUS$495,88012 Aug 19
Richard Wallman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares23,000
Max PriceUS$21.56
BuyUS$997,74212 Aug 19
Robert Palmisano
EntityIndividual
Role
Chief Executive Officer
President
Shares46,654
Max PriceUS$21.39
SellUS$29,78030 Jul 19
Timothy Lanier
EntityIndividual
Shares1,000
Max PriceUS$29.78
SellUS$248,61817 Dec 18
Patrick Fisher
EntityIndividual
Shares9,000
Max PriceUS$27.62
BuyUS$536,60011 Dec 18
Richard Wallman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares20,000
Max PriceUS$26.83
SellUS$76,34020 Nov 18
Elizabeth Weatherman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,640
Max PriceUS$28.92

Ownership Breakdown


Management Team

  • Bob Palmisano (74yo)

    President

    • Tenure: 8yrs
    • Compensation: US$6.38m
  • Jim Lightman (61yo)

    Senior VP

    • Tenure: 7.8yrs
    • Compensation: US$1.16m
  • Tracy Dewey (58yo)

    Senior VP & Chief Communications Officer

    • Tenure: 7.9yrs
  • Lance Berry (47yo)

    Executive VP

    • Tenure: 9.8yrs
    • Compensation: US$1.83m
  • Kevin Cordell (53yo)

    Executive VP & Chief Global Commercial Officer

    • Tenure: 0.7yrs
    • Compensation: US$1.63m
  • Jennifer Walker (51yo)

    Senior Vice President of Process Improvement

    • Tenure: 7.8yrs
  • Drew Morton (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.5yrs
    • Compensation: US$1.89m
  • Julie Andrews (48yo)

    VP & Chief Accounting Officer

    • Tenure: 7.3yrs
  • Peter Cooke (54yo)

    President of emerging markets

    • Tenure: 0.7yrs
    • Compensation: US$2.57m
  • Jonathan Porter (49yo)

    Senior VP & Chief Compliance Officer

    • Tenure: 4.9yrs

Board Members

  • David Stevens (65yo)

    Chairman of The Board

    • Tenure: 10.7yrs
    • Compensation: US$338.18k
  • Richard Wallman (68yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$336.74k
  • John Miclot (60yo)

    Non-Executive Director

    • Tenure: 12.7yrs
    • Compensation: US$269.18k
  • Bob Palmisano (74yo)

    President

    • Tenure: 8yrs
    • Compensation: US$6.38m
  • Bess Weatherman (59yo)

    Non-Executive Director

    • Tenure: 13.2yrs
    • Compensation: US$320.71k
  • Gary Blackford (62yo)

    Non-Executive Director

    • Tenure: 11.7yrs
    • Compensation: US$273.18k
  • Amy Paul (67yo)

    Non-Executive Director

    • Tenure: 11.7yrs
    • Compensation: US$303.25k
  • Kevin O'Boyle (63yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$273.18k
  • J. Mackin (52yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: US$220.68k

Company Information

Wright Medical Group N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wright Medical Group N.V.
  • Ticker: WMGI
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$2.688b
  • Shares outstanding: 126.68m
  • Website: https://www.wright.com

Number of Employees


Location

  • Wright Medical Group N.V.
  • Prins Bernhardplein 200
  • Amsterdam
  • Noord-Holland
  • 1097 JB
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WMGINasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDFeb 2011
T98DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2011
WMGI NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNFeb 2011

Biography

Wright Medical Group N.V., a medical device company, designs, manufactures, markets, and sells upper and lower extremities, and biologics products in the United States, Europe, the Middle East, Africa, Can ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:56
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.